Conflict and Management Styles 27 July 2010 Nadja Ortner on Conflict and Management Styles.
Chapter Management Styles
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Transcript of Chapter Management Styles
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Culture, Management Style,
and Business Systems
Chapter 5
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Adaptation to customs
Adaptation
The willingness to adapt to other customs isessential in international marketing
Degree of Adaptation:
This does not mean that businesses discard their
methods of conducting business, rather that executivesneed to be aware of differences and willing to adapt tothe differing customs
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T ypes of Customs
3 Types of Customs1. Cultural Imperatives
Business customs and expectations that MUST be met inorder to conduct successful business transactions inother countries/cultures
2. Cultural Electives Business customs and expectations that are OPTION AL,
in which business executives may participate/conform in,but is not required.
May help to establish rapport and respect whenparticipation occurs
Majority of customs fall into this category
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T ypes of Customs
3. Cultural Exclusives
Customs that are reserved exclusively for thelocals, where foreign participation is EXCLUDED Example: Foreign business people criticizing local
politicians, business practices where it is acceptablefor the local to do so
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The Impact of
American Cultureon Management Style
Most widely accepted views regarding U.S.culture:
Master of destiny viewpoint Independent enterprise as the instrument of social action
Personnel selection and reward based on merit
Decisions based on objective analysisWide sharing in decision making
Never-ending quest for improvement
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Management Styles around t heWorld
Types of Decision Making A pproaches1. The authoritative approach
Top level management decision making is usually found in smaller businesses where centralized decision-makingis possible
2. The delegated approach Decentralized decision making is usually found in large
size businesses with highly developed management systems (U.S.)
A llows executives at different levels to exercise authorityover their own functions
3. The committee approach
Decisions are made by consensus or in a group (Japan)
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Management Objectives & A spirations
Understanding how managers
objectives and
aspirations affect theirbusiness outlook is critical
4 Important areas to understand:
1. Security and mobility
Importance of security and definition differ inmany countries (can mean good wages and training; maybe lifetime employment)
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Management Objectives and A spirations
2. Personal life
Personal life takes precedent over othermotivators (wages, status)
3. A ffiliation and Social acceptance
A ccepted by peers
Important element of the group decision makingprocess
4. Power & A chievement
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Communication Styles
Edward T. Hall ideas on CommunicationStyles:
Crossing Borders 5.2 pg. 133 A Classic Edward T. Halls Language (Symbolism) of Space
Exhibit 5.2 pg. 135 Contextual Background of Various Countries
Face-to-face communications Low Context: depends heavily on verbal communication
(Swiss, Germany, U.S.)
High Context: depends heavily on nonverbalcommunications
See Crossing Borders 5.3 pg. 136 When Yes MeansNo
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Importance of Communication wh
enadapting to business customsCommunication
Translation and interpretation (See Crossing Borders 5.4 pg. 137 You Say You Speak
English)
Formality and tempo
P-time vs. M-time
M-time (monochronic) concentrate on one thing at atime
P-time (polychronic) completion of a transaction ismore important than sticking to a schedule
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Gender Bias in International Business
Is there a gender bias against womenmanagers when operating in International
arenas?Most evidence indicates that when women aretrained and backed by their corporation,resistance from other cultures is either minimized or negated completely
Comparative statistics of women in managerialpositions worldwide (approximations):
U.S. 43%
Britain 33%
Switzerland
28%
Germany 9.2%
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Business Et hics
Bribery & ExtortionBribery
Voluntary payment offered by individual(s) seeking anunlawful advantage
SEC regulates U.S. Companies domestically and internationally
Transparency International organization dedicated tocurbing corruptions worldwide
See Exhibits 5.4 and 5.5 pg. 145
Extortion Payments are extracted under duress by someone in an
authoritative position (host country) See Crossing Borders 5.6 pg. 146 Bangladesh at the
bottom
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Business Et hics
Subordination & Lubrication
Subordination Involves giving large sums of money
Lubrication Involves giving small amounts of money, or gifts
Foreign Corrupt Practices A ct (FCP A ) Important act that prohibits U.S. businesses from paying
bribes openly or using middlemen or agents to bribe onbehalf of the U.S. business